Disappointing quarter results.
Net Sales at Rs 435.66 crore in December 2023 down 10.5% from Rs. 486.77 crore in December 2022.
Quarterly Net Profit at Rs. 39.64 crore in December 2023 down 38.86% from Rs. 64.84 crore in December 2022.
EBITDA stands at Rs. 89.79 crore in December 2023 down 20.35% from Rs. 112.73 crore in December 2022.
Compared to other paper companies…Satia is able to maintain its margin…or u can say reasonable degrowth…
To me…results are good!
It’s still available at cheap valuations.
It will be case of PE rerating in Satia than earnings growth from here on.
If Satia valued at Pakka base share price would have touched 500. Best example for theory does not work always in the market for me
True that… however pakka is moving based on the futuristic products…it’s not apple to apple comparison.
On a side note…even Pakka was languishing at single digit pe 6 months ago!!
If Pakka can get rerated so can Satia!
Cash rich…debt free…buybacks… efficieny… futuristic products…
Long list for Satia…it can achieve in coming times.
True…Hope so then I would be very happy… any way will hold for few more years. I think we have margin of safety.
Here is one video that impressed me
The big problem with satia is that there is no growth plans as such. There plans to set up cutlery division has not really materialised as they had thought. For FY25 they don’t have any major capex just targeting 5-10% volume growth. The main difference between this and Pakka is that atleast Pakka has some growth triggers with new innovative products (even though that division has not really performed).
Moreover, Pakka has an ‘Ayodhya advantage’. Pakka doesn’t sell paper like Satia does and hence deserves FMCG-like valuations.
When I brought Satia it was almost doubling the business and my calculations was right and the sales from 890 crore went to 1800 crore and PAT also doubled from 100 cr to 200 cr. And paper companies were trading at 10 PE. And thought Satia will also trade at 10 PE. If then Satia should trade at 200 to 250 range.
Not disappointed because share went from 80 to 160 and back to 120 range. Will hold for few more years seems it is a marginal bet at 80. Let’s see how things goes in the future.
Agree - it makes sense to hold; more so because of the eco-friendly products and reasonable valuations
My CIAZ turned into Creta I thought it will become an Innova. Hope it won’t turned to be two wheeler if it turned to be a 2 wheeler then I will hire a driver for future drive…